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BANCROFT 
LIBRARY 


THE  LIBRARY 

OF 

THE  UNIVERSITY 
OF  CALIFORNIA 


CONGRESS,  ]  SENATE.  j  Mis.  Doc. 

on.       J  (    No.  21. 


3d  Session 


7£  I 

*W"w 

MEMORIAL 


OF 


GOLD  AND  SILVER  MINIM  COMPANIES 

OF 

CALIFORNIA  AND  NEVADA  TERRITORY, 


That  the  act  of  the  Nevada  territorial  legislature  entitled  ' '  An  act  to 
provide  for  the  formation  of  corporations  for  certain  purposes,"  may 
not  be  confirmed. 


FEBRUARY  6,  1863 — Ordered  to  lie  on  the  table,  and  be  printed. 


GENTLEMEN:  The  undersigned,  president  and  directors  and  stock- 
holders of  companies  incorporated  under  the  laws  of  the  State  of 
California,  beg  to  address  you,  as  their  representatives  in  Congress, 
upon  a  matter  of  much  importance  to  the  prosperity  of  the  State  and 
the  citizens  thereof. 

A  bill  has-  been  passed  at  the  late  session  of  the  Nevada  territorial 
legislature  entitled  "An  act  to  provide  for  the  formation  of  corpora- 
tions for  certain  purposes,'7  which  contains,  among  other  provisions, 
the  following: 

"SEC.  26.  All  corporations  heretofore  formed  under  the  provisions 
of  acts  of  incorporation  in  other  States  or  Territories,  and  holding  or 
owning  property  within  this  Territory  of  such  a  character  as  specified 
in  section  first  of  this  act,  and  managed  by  a  board  or  boards  of  trus- 
tees or  directors,  having  their  principal  place  of  business  outside  the 
limits  of  this  Territory,  are  hereby  required  to  move  their  places  of 
business,  principal  offices,  books,  and  papers,  heretofore  kept  and 
necessary  for  the  transaction  of  such  business,  to  some  point,  to  be 
designated  by  said  corporation,  within  the  limits  of  this  Territory, 
within  six  months  after  the  passage  of  this  act,  or  otherwise  such 
corporation  or  corporations  shall  be  disregarded  in  law  as  a  corpora- 
tion, and  the  corporators  thereof  treated  as  tenants  in  common  or 
joint  tenants,77  &c.,  &c. 

The  immediate  effect  of  this  legislation  has  been  seriously  to  impair 
the  value  of  investments  which  the  enterprise  and  labor  of  citizens 
of  California  had,  at  considerable  risk,  placed  in  a  condition  to  be  at 


2  MINING   COMPANIES    OF   CALIFORNIA. 

once  advantageous  to  the  best  interests  of  Nevada  Territory,  and 
reasonably  profitable  to  those  engaged  in  them.  Its  ultimate  effect, 
if  allowed  to  stand,  will  be  practically  to  confiscate  property  legiti- 
mately acquired  by  your  constituents,  and  to  deprive  them  not  only 
of  all  benefit  otherwise  derivable  from  their  labor  and  enterprise, 
but  of  the  capital  actually  expended  in  the  development  of  the  silver 
mines  of  Nevada  Territory. 

The  history  of  the  development  of  these  mines  exhibits  in  a  marked 
degree  the  hardship  and  unfairness  of  this  legislation. 

Unlike  the  gold  deposits  of  California,  the  silver  mhi'Bs  of  Nevada 
Territory  require  a  large  expenditure  of  capital  before  they  can  be 
made  available  for  any  purpose.  At  the  time  of  their  discovery,  in 
1859.  the  people  of  the  Territory  could  not,  either  in  their  individual 
capacity,  or  by  combining  together  in  companies,  furnish  this  capital. 
Had  it  depended  upon  them  the  mines  would  have  remained  unde- 
veloped to  this  day. 

Capital  was  invited  from  abroad,  and  especially  was  this  invitation 
urged  upon  the  citizens  of  California.  But  the  citizens  of  California 
could  not.  as  individuals,  furnish  the  requisite  aid.  It  was  only  by 
forming  companies  that  the  end  could  be  accomplished. 

The  Territory  of  Nevada  not  being  then  organized,  it  was  impossi- 
ble to  form  these  companies  under  the  laws  of  the  locality  where  the 
mines  are  situated.  Nor  could  the  laws  of  any  State  in  the  Union 
offer  to  the  people  of  that  Territory  greater  security  than  do  those  of 
California. 

As  you  are  aware,  the  constitution  of  this  State  prohibits  the  grant- 
ing of  special  charters.  Companies  are  incorporated  under  general 
statutes.  No  company  can  obtain  privileges  or  avoid  restrictions 
which  are  not  equally  applied  to  all  other  companies.  And  the  best 
evidence  that  the  people  of  Nevada  have  nothing  to  complain  of  in 
this  respect  is  found  in  the  fact  that  the  present  corporation  law  of 
that  Territory  is,  with  the  exception  of  the  prescriptive  features  here 
complained  of,  almost  a  copy,  verbatim,  of  the  law  of  California. 

Accordingly  the  citizens  of  California  formed  corporations  under 
the  laws  of  their  own  State,  and  thereby  combined  sufficient  capital 
to  develop  the  mines  of  Nevada  and  place  them  in  a  position  to  be 
worked  profitably. 

They  were  fully  aware  of  the  risk  of  this  undertaking,  growing  out 
of  the  fact  that  the  mines  might  turn  out  valueless,  a  result  which 
has  actually  occurred  in  many  instances;  but  they  did  not  for  a  mo- 
ment suppose  that  when  they  were  about  to  reap  the  legitimate 
reward  of  their  exertions,  and  the  risk  they  had  incurred,  the  people 
of  the  Territory  would  attempt  to  deprive  them  of  it  by  hostile  legis- 
lation. 

The  course  of  the  territorial  legislature  is  in  striking  contrast  to 
that  adopted  by  California.  Companies  were  formed  by  special 
charter  granted  by  foreign  governments,  and  other  States  of  the 
Union,  to  work  the  mines  of  California.  They  have  always  been 
protected  by  just  and  proper  laws  of  this  State .  Foreign  capital  has 
enjoyed  all  tke  security  afforded  to  capital  furnished  by  our  own  citi- 


MINING   COMPANIES   OF   CALIFORNIA.  3 

zens,  and  the  State  and  country  at  large  have  realized  a  proportionate 
benefit  from  that  policy. 

But  it  is  needless  to  state  at  greater  length  the  unfairness  of  the 
legislation  complained  of.  The  act  of  the  people  of  Nevada  speaks 
for  itself.  It  is  an  attempt  to  appropriate  to  themselves  the  benefit 
of  the  labor,  enterprise,  and  risk  of  others.  Having  invited  and  en- 
couraged tihe  citizens  of  California  to  undertake  the  development  of 
the  mines  in  their  Territory,  they  have  waited  until  the  moment  of 
fruition  to  attempt  to  seize  the  prize  which  we  have  rendered  valu- 
able. We  say  attempt,  for  we  contend  that  it  was  not  the  intention 
of  Congress  to  confer  upon  the  territorial  legislature  the  power  to 
pass  acts  of  the  character  complained  of.  We  therefore  submit  the 
matter  to  you  as  our  representatives,  with  the  request  that  you  lay  it 
before  Congress  in  such  form  as  you  may  see  fit,  and  obtain  such 
remedy  as  Congress  can  grant.  B.ncrt>fl 

JUJtUM    (J.  H/AKJu, 

President  Gould  and  Curry  Silver  Mining  Co. 

EDWARD  MARTIN, 

Vice- President  of  the  Ophir  Mining  Co. 

GEO.  ROY,  JR., 
President  of  the  Chollar  Co. 

DE  CAREL, 

President  of  the  Sapphire  Silver  Mine  and  Mining  Co., 
By  BOILHAN,  Treasurer. 

GEO.  C.  NICKWARE, 

President  Potosi  Gold  and  Silver  Mining  Co. 

GEO.  S.  MANN, 

President  Hale  and  Nor  cross  Silver  Mining  Co., 
By  JOEL  F.  LIGHTER,  Sec'y. 

WM.  M.  LENT, 

President  Savage  Mining  Co. 

WM.  M.  LENT, 
President  Central  Silver  Mining  Co. 

THOMAS  BELL, 

President  California  Silver  Mining  Co. 

P.  C.  HYMAN, 
President  Meridith  Silver  Mining  Co. 

JOS.  P.  NOURSE, 
Secretary  Burning  Moscow  Silver  Mining  Co. 

JAS.  C.  L.  WADSWORTH. 
GEO.  O.  WHITNEY, 

President  Sierra  Nevada  Silver  Mining  Co. 
A.  B.  FORBES. 
DICKSON,  DE  WOLF  &  CO. 
WM.  H.  SHARP, 
President  of  Daney  Gold  and  Silver  Mining  Co. 

A.  T.  LAWTON, 
Trustee  Gould  Sf  Curry  Co.  and  Chollar  Co. 

LOUIS  SLOSS, 
Trustee  Chollar  Silver  Mining  Co. 


4  MINING    COMPANIES    OF    CALIFORNIA. 

P.  0.  LANDER, 

Trustee  Potosi  Co. 

WM.  M.  LENT, 

GEO.  HEARST, 

THOMAS  BELL, 

Trustees  Gould  <$  Curry  Co. 

A.  B.  McCREW, 
Trustee  Gould  fy  Curry  Co.,  Central  Co.,  and  Savage  Co. 

CHAS.  HOSMER, 
Trustee  Iowa  Co.  and  Norton  Co. 

CHAS.  F.  LOTT, 
Trustee  Opliir  Silver  Mining  Co. 

DONOHOE,  RALSTON  &  CO. 
J.  M.  BYRNE, 

Trustee  Daney  Co. 

H.  SANBORN. 
G.  B.  McKENNEY,  Sec'y. 
C.  DAVIDSON  &  CO. 
JULIUS  &  CO. 

Hon.  M.  S.  LATHAM,  Hon.  J.  A.  McDouGALL,  Hon.  T.  G.  PHELPS,  Hon- 
A.  A.  SARGENT,  and  Hon.  F.  F.  Low. 


